5 How to distribute Inheritated Property

5 How to distribute Inheritated Property

Article 906 (Criteria of Distribution of Inherited Property) sets out

Article 906 Upon the  distribution of inherited propertythe type and nature of goods or rights belonging to the inherited propertythe age, occupation, mental and physical state, and financial circumstances of each heirand all other matters, shall be considered.

There are three main ways of dividing heritage:

(1)Distribution  of property itself

 It divide the property itself.

If the real estate shall be devided, it will be subdevided and inherited to each.

(2) Compensation distribution

” Compensation distribution” is that One or more heirs have acquired the goods, and the person who acquired the goods pays the compensation money to the other heirs.

For financial assets, it is particularly important to handle deposits and savings receivables. If the judgment and practice in the past was changed by the supremem court judgment on December 19, 2016.The judgement set out that  the deposits and savings receivables were jointly inherited, they are not divided accordingly, but will be subject to inheritated property distribution process, and will be inherited by each heir through the process along with other property.

In this case, however, it is inconvenient for the heir to inherit each of the deposits in the name of the inheritee. It is common for one heir to acquire deposits and savings receivables and he/she pay other heirs compensation.

(3) Realising distribution

“Realising distribution” is the way of distribution which  sells inheritated property to a third party and divides the sale price among the heirs.

If an agreement is reached between the heirs, the rules may be such that when and by what time the sale will be made and the amount excluding the expenses will be received according to the respective inheritance.

In the event that an agreement cannot be reached between the heirs, the heirs may, for example, auction each of the real estate.

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